TIE and other stock events
Today was a volatile day. That suggests that a potential transition is coming. Nervousness is here.
AMX - Continues to slide after being denied purchasing of Italtel. Whatever. the company is growing subscribers faster than expected (an extra 500K subscribers) and the margins have surged: up to 43% from ~39%. Rising revenue and significantly growing margins is what we want to see.
The only weak spot is the debt: $10B. This is actually low for a Telecom company which prefer to use debt to buy equipment.
A 20 P/E for ~100% growth. That's undervalued
ATW - Down 2% then up 2%
CTSH - Volatile (down 3% at one point, up 2% in afterhours). I expect a stock split announcement soon
NUAN - Pullback continues. Down 12% from high.
MDR - Large volume today
OCN - Down 2% before ending flat
TRID - Circuit City reported problems with LCD TV sales. Don't worry - that's because they are getting beaten by Walmart, Costco and Best Buy. In fact, CIBC chose TRID as one of their 3 chip stocks to buy. Shorts are still as high as 15%, which makes no sense to me except insofar as this is a trading stock for many, when it should be a growth stock.
UCTT - Ugggh. Down 30% from its high. Time to buy more and average down. I just hate to see a significantly undervalued company like UCTT.
TIE - Down ~6% on blowback from RTI.
RTI reported and the investment community did not like it. Down 15%. Now, the stupid part, is that their margins got hit because of non-titanium production. Ti production was actually strong.
In his analysis of RTI, Banc of America analyst Kuni M. Chen wrote:
"RTI's results were consistent with a quarterly decline in Allegheny's high performance metals segment, which includes titanium products. We believe the near term weakness is due to inventory destocking, rather than a shift in longer term fundamentals."
The analyst said investors should buy shares of Titanium Metals on any weakness. He has a $41 target price on the stock. Chen rates RTI at "Neutral" with a $99 target price and rates Allegheny at "Neutral" with a $127 target price.
A different and not necessarily comforting look at today's activity is that TIE's stock has seen no growth to pullback from whereas RTI has grown a lot, far above its 50 DMA.
AMX - Continues to slide after being denied purchasing of Italtel. Whatever. the company is growing subscribers faster than expected (an extra 500K subscribers) and the margins have surged: up to 43% from ~39%. Rising revenue and significantly growing margins is what we want to see.
The only weak spot is the debt: $10B. This is actually low for a Telecom company which prefer to use debt to buy equipment.
A 20 P/E for ~100% growth. That's undervalued
ATW - Down 2% then up 2%
CTSH - Volatile (down 3% at one point, up 2% in afterhours). I expect a stock split announcement soon
NUAN - Pullback continues. Down 12% from high.
MDR - Large volume today
OCN - Down 2% before ending flat
TRID - Circuit City reported problems with LCD TV sales. Don't worry - that's because they are getting beaten by Walmart, Costco and Best Buy. In fact, CIBC chose TRID as one of their 3 chip stocks to buy. Shorts are still as high as 15%, which makes no sense to me except insofar as this is a trading stock for many, when it should be a growth stock.
UCTT - Ugggh. Down 30% from its high. Time to buy more and average down. I just hate to see a significantly undervalued company like UCTT.
TIE - Down ~6% on blowback from RTI.
RTI reported and the investment community did not like it. Down 15%. Now, the stupid part, is that their margins got hit because of non-titanium production. Ti production was actually strong.
In his analysis of RTI, Banc of America analyst Kuni M. Chen wrote:
"RTI's results were consistent with a quarterly decline in Allegheny's high performance metals segment, which includes titanium products. We believe the near term weakness is due to inventory destocking, rather than a shift in longer term fundamentals."
The analyst said investors should buy shares of Titanium Metals on any weakness. He has a $41 target price on the stock. Chen rates RTI at "Neutral" with a $99 target price and rates Allegheny at "Neutral" with a $127 target price.
A different and not necessarily comforting look at today's activity is that TIE's stock has seen no growth to pullback from whereas RTI has grown a lot, far above its 50 DMA.
posted by Andrew at
6:42 PM
2 Comments:
http://biz.yahoo.com/ms/070427/192036.html?.v=1&.pf=family-home
If approved by Congress, does it mean more demand for Titanium in the long run and TIE going to $60 and beyond?
The open skies pact will be approved. Impact on airplane demand is minimal imho. More planes implies that there is some mysterious hitherto pent-up demand for air travel across the Atlantic. I don't rule out a slight increase in plane demand as companies duke it out for cross-Atantic positioning. But overall, I expect more link-ups between US and European companies.
Imagine a RyanAir/JetBlue synch up, for example.
Not to worry, though. Natural demand for planes in China, India and the Middle East will keep demand strong for Titanium.
Another factor: if plane demand increases, Boeing's margins strengthen. It also means that it will pay vendors premiums for their help to meet demand. PCP anyone?
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